A guest post from Joshua Rodriguez -
These days, the average American is no stranger to credit card debt. In fact, we love using our credit cards. But, after war and world-wide financial recession, many of us are starting to re-think our decision to use our cards so frequently. The truth is, more and more consumers these days are becoming interested in paying off their credit card debts. Although, at first glance, this task can seem a bit overwhelming, the truth is, it’s not that difficult. All it takes is a plan and you committing to it! Come on, I’ll walk you through it…
A Step By Step Guide To Getting Rid Of Your Credit Card Debts
Step #1: Preparing For The Battle – I’ve never heard of a fighter winning the belt without preparing first. The truth is, not using your credit cards is going to be a battle best fought with the right weapon. In this case, that weapon is your credit card profile. All this is is a list of your debts. In your list, you should include lender names, balances, interest rates, minimum payments, customer service phone numbers and pay-to addresses for each of your credit cards with a balance.
Step #2: Taking Advantage Of Your Qualifications – The lending industry is a very competitive one and, if you are a customer that is known for paying on time, they will compete for your business. One way that lenders do this is through balance transfer credit cards. If so, check out the market to see if there are any offers that provide lower interest rates than the rates you are currently paying. If so, apply and transfer your balances to lower long term rates!
Step #3: Commit To A Constant Payment – Your credit card minimum payments are based on your balances. When paying off your debts, this is a crucial factor. If your payments go down every time your balance does, you will NEVER pay off your credit cards! Your best option is to come use an aggressive plan of attack known as the constant payment plan. To do so, add up all of your minimum payments. Now ask yourself, “Is this all I can afford to send? Can I comfortably send extra?”. No matter what you decide, write down the total amount of money you can comfortably afford to pay towards your credit card debt. Now, you have to commit to sending no less than this month’s payments until your debts are completely paid off. If you do, you stand to save hundreds or even thousands of dollars in interest charges over the life of your debt. Which, will now be years less!
Step #4: Go After Your Highest Interest Rate First – Now that you have decided on a constant payment, it’s time to make sure that you get the most out of that payment. To do so, we need to attack the highest interest rate first with the debt stacking plan. Stacking your debts is a very easy thing to do. After all minimum payments are made each month, send an extra payment to the highest interest rate account with the remaining funds in your constant payment. By sending all extra funds to your highest interest rate debt, you will quickly pay it off. Once this happens, send all extra funds to your next highest interest rate. Continue to do this until all of your credit card debts are completely paid off!
The End Result
As a personal credit card debt consultant, I have seen this plan save quite a few people thousands of dollars and years in time paying off their debts! By following this plan, you will reduce your interest rates to the lowest rates you qualify for and attack your highest interest rates with aggressive payment plans! All it takes is a bit of commitment on your end and you will be debt free in no time!